Prophase Labs, Inc. Announces Intention To Commence Tender Offer TO
REPURCHASE UP TO 4,000,000 SHARES OF ITS COMMON STOCK

DOYLESTOWN,
PA — (Globe Newswire – August 15, 2017) — ProPhase Labs, Inc. (NASDAQ: PRPH, www.ProPhaseLabs.com), a diversified
natural health medical science company (the “Company” or “ProPhase”), today announced that it intends
to commence a tender offer to purchase up to 4,000,000 shares of its common stock at a price per share of $2.30 per share. The
Company anticipates that the tender offer will be launched on or before August 25, 2017 and will remain open for at least 20 business
days from initiation. If the maximum number of shares to be purchased in the tender offer were in fact tendered, the number of
shares
that would then be purchased in the tender offer represents approximately 24.7% of ProPhase’s currently issued and
outstanding common shares. If stockholders tender more than 4,000,000 shares, the maximum sought in the tender offer, ProPhase
will purchase shares from all stockholders who properly tender shares, on a pro rata basis, based on the aggregate number of shares
tendered. Ted Karkus, Chairman of the Board and Chief Executive Officer of ProPhase, has irrevocably committed to tender 500,000
shares he owns on the same terms and conditions as are offered to all other stockholders. The NASDAQ Official Closing Price of
ProPhase’s common stock on August 15, 2017 was $2.13 per share. ProPhase has approximately $36.9 million in cash and cash
equivalents, a portion of which will be used to fund the tender offer. The Board of Directors of ProPhase has determined to commence
the tender offer in order to provide liquidity to its stockholders by permitting them the opportunity to tender shares of ProPhase
common stock for cash in accordance with the terms of the offer to purchase that will be filed with the Securities and Exchange
Commission.

None
of ProPhase, its Board of Directors, the Information Agent or the Depositary will make any recommendations to stockholders as
to whether to tender or refrain from tendering their shares into the tender offer. Stockholders must make their own decision as
to how many shares they will tender, if any.

THIS
PRESS RELEASE IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER TO BUY OR THE SOLICITATION OF AN OFFER TO SELL
SHARES OF PROPHASE LABS, INC. COMMON STOCK. THE TENDER OFFER FOR SHARES OF PROPHASE LABS, INC. COMMON STOCK DESCRIBED IN THIS
PRESS RELEASE HAS NOT YET COMMENCED. THE TENDER OFFER WILL BE MADE ONLY PURSUANT TO AN OFFER TO PURCHASE, LETTER OF TRANSMITTAL
AND RELATED MATERIALS THAT PROPHASE INTENDS TO DISTRIBUTE TO ITS STOCKHOLDERS AND FILE WITH THE SECURITIES AND EXCHANGE COMMISSION.
STOCKHOLDERS AND INVESTORS SHOULD READ CAREFULLY THE OFFER TO PURCHASE, LETTER OF TRANSMITTAL AND RELATED MATERIALS BECAUSE THEY
WILL CONTAIN IMPORTANT INFORMATION, INCLUDING THE VARIOUS TERMS OF, AND CONDITIONS TO, THE TENDER OFFER. STOCKHOLDERS AND INVESTORS
WILL BE ABLE TO OBTAIN A FREE COPY OF THE TENDER OFFER STATEMENT ON SCHEDULE TO, THE OFFER TO PURCHASE, LETTER OF TRANSMITTAL
AND OTHER DOCUMENTS THAT PROPHASE INTENDS TO FILE WITH THE SECURITIES AND EXCHANGE COMMISSION AT THE COMMISSION’S WEBSITE
AT WWW.SEC.GOV OR BY CALLING THE INFORMATION AGENT (TO BE IDENTIFIED AT THE TIME THE OFFER IS MADE) FOR THE TENDER OFFER. STOCKHOLDERS
ARE URGED TO CAREFULLY READ THESE MATERIALS PRIOR TO MAKING ANY DECISION WITH RESPECT TO THE TENDER OFFER.

About
ProPhase

ProPhase
is a manufacturer, marketer and distributor of a diversified range of homeopathic and health care products that are offered to
the general public. We are also engaged in the research and development of other potential over-the-counter (“OTC”)
drugs and natural base health products, including supplements, personal care and cosmeceutical products, and intend to explore
and evaluate opportunities outside of the consumer products industry. For more information visit us at www.ProPhaseLabs.com.

Forward-Looking
Statements

Except
for the historical information contained herein, this document contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including statements relating to the expected timing and terms of the tender offer.
Management believes that these forward-looking statements are reasonable as and when made. However, such forward-looking statements
involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those
projected in the forward-looking statements. These risks and uncertainties include, but are not limited to: changes in financial
markets; changes in economic or regulatory conditions or other trends affecting the healthcare industry; and changes in facts
and circumstances and other uncertainties concerning the commencement and completion of the tender offer, and the risk factors
listed from time to time in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and any subsequent SEC filings.

Investor
Contact

Ted
Karkus, Chairman and CEO

ProPhase
Labs, Inc.

(267)
880-1111

The above information was disclosed in a filing to the SEC. To see the filing, click here.